While some investors will gravitate towards larger markets that are proven performers, others are finding real success in parking their money in smaller markets. Although not as expansive or flashy as the big city to its east, Guelph, Ont.
is increasingly the preferred target for investors.
is a perfect example of a smaller market that is ripe with opportunity. While it doesn’t usually command the kind of attention that Toronto or Ottawa do, the recent economic performance of this smaller city has forced even the most experienced of buyers to give Guelph
a second look.
“Guelph is a dynamic university city with a well-diversified economy that has weathered the past recession better than most similar cities,” explains Paul Fitzpatrick, broker of record for At Home Group Realty. “Our real estate market has outperformed the Ontario market.”
Unlike many other Canadian cities, which have either remained flat or experienced minimal growth in recent years, Guelph’s market
has grown in leaps and bounds over the years. The appeal for potential buyers, who often base their decisions on market growth, is obvious.
“Year-over-year, Guelph has consistently risen in value,” says mortgage broker Rob Campbell of VERICO The Mortgage Wellness Group. “The past 15 years have seen steady growth, with some neighbourhoods outperforming others. On average, the city as a whole has seen growth of around 7.5 per cent in value.”
Another benefit to investing in Guelph
is the fact that its market has remained strong, even during tough periods. The city was relatively unaffected by the recession, and investors quickly descended upon Guelph to take advantage.
“It’s got its own micro-economy,” says Frank Basso, an agent with Coldwell Banker Neumann Real Estate. “That’s not to say that Guelph is recession-proof, but even during times of fluctuation, Guelph
kind of just flows along and always seems to increase in value.”
If there’s one thing that will draw investors to a market, it’s diversity. Prospective buyers like to see diversity not just in the city’s property inventory, but also in its economy.
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It’s often said that good things come in small packages – a saying that may be as applicable to real estate locations as it is to gift boxes.